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Blockchain vs AI: Difference Between Blockchain and AI

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25th Nov, 2020
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Blockchain vs AI: Difference Between Blockchain and AI

It is largely accepted that blockchain and artificial intelligence (AI) technologies are being adopted at a phenomenal rate. Both AI and blockchain technologies have various technological complexity and large business implications. Blockchain and AI are among the great disruptive technologies, and in future, they will reshape how humans live, collaborate and interact. 

AI and blockchain are known as the main driving entities behind today’s innovation. Both have introduced radical shifts with many aspects of human life, and it is predicted to contribute millions of capital investments to the global economy. The future is near with autonomous systems and prediction technologists who can make required contents and posts on your system of interest in natural conversations.

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With the advances and arrival of more content and economy sharing platforms, this means that entities and companies will no longer be asked to trust “unreliable platforms”. So, what happens if these two technologies are combined? After careful understanding of these technologies, we will move ahead with some of the applications of using these technologies combinedly. 

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Read: Blockchain jobs and their career opportunity for non-techies.

What is Blockchain Technology? 

 A blockchain is considered as a public ledger which is shared and agreed by all peers in a distributed network—taking an example of Data records, where transactions are stored in block units using the hash values and time stamps for additional authentication.

Here, each of these blocks is connected to the previous block, hence, creating a chain of peer to peer connected networks. The key advantage of the blockchain is that immutability can be achieved. This allows users to achieve the security that protects from data modification. 

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It works based on consensus protocol, which is building blocks of the blockchain network. There are two major classifications in blockchain technologies:

Proof-of-work (POW) blockchains Ex: Bitcoin4 and Ethereum, Here, developers in blockchain are involved in solving computationally hard problems and creating blocks. Once the block is created, the user is paid and they are eligible to collect transaction fees. 

Proof-of-stake (POS) blockchains POS consensus algorithm in the blockchain connectivity network is based on randomly selected validators, who “stake” native network known as tokens which are locked in Blockchain, used to develop and approve blocks. Validators or users are paid based on total stake created or validated. 

PoS is largely seen as a largely scalable version of Proof of Work (PoW) consensus commonly used in Bitcoin, which utilizes significant energy expenditures.

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What is Artificial Intelligence? 

 Artificial intelligence (AI) is generally referred to as the ability to simulate human intelligence using machines which are developed to compute to work like humans and complete their actions. This term is commonly applied to any machine that exhibits traits related to a human mind involving learning and problem-solving.

The main goal is to minimize human errors and achieve quick actions from machines. Developing AI involves teaching the computer, which has greater computing power by developing machine learning codes. Each task is referred to perform quick computing tasks. The best example of it is self-driving cars. 

 With a better understanding of Artificial intelligence and blockchain, we will move ahead with a discussion about some of the combined technology applications. 

Read: 8 Reasons Why Blockchain is the Future

Artificial Intelligence  Vs Blockchain

First, blockchain has many issues related to security, scalability and efficiency. AI has issues of its own such as explainability, trustworthiness, and privacy. Now, if these two technologies are used together, it would create the next digital generation.

Here, the aim is that blockchain provides trustlessness, privacy and explainability to AI. While AI provides its knowledge to build machine learning systems based on blockchain to achieve scalability and which can be used precisely for personalization and governance.     

  • Blockchain for AI (confidentiality and privacy)
  • AI for Blockchain (Security and transparency)

 Blockchain can enable decentralized marketplaces and coordination platforms that can be used for many components of Artificial Intelligence, that includes computing power data and algorithms. These will parent many other innovations and usage of AI to a greater level. 

  • Secure data sharing– As AI involves managing lots of data that is used to train machines, there is a need for a more effective and secure way to share data which is voted and stored. Also, privacy is one of the critical and growth factors that involves managing large data leaks and misuse of personal accounts.
  •  Your data, your price– More than data sharing and controlling users data, blockchain technologies enables selling data using smart contracts, which creates data marketplaces which omit middlemen, making selling more secure and private. This marketplace lowers the barrier involving smaller players.
  •  Selling your spare computing power– Blockchain can enable better distribution of computing power which is essential for machine learning and training in AI created through a decentralized market for selling computing power which can be termed as blockchain-based cloud computing. GPUs are generally utilized in a very little fraction of time; this unused power of computing time can be added for bidding using AI smart contracts, and get paid.

Also Read: Successful Career in Blockchain


Despite faster development, involving both AI and blockchain have a long road of development. With AI, the advanced most recent development is Google Duplex, which involves automating phone calls and making required tasks on behalf of the users. But there is a limitation which can be used only for achieving three main functions: holiday hours, restaurant reservation and hair salon appointments. 

Yes, there are many advancements involving algorithms which make use of greater amounts of machine computing power and training data, while keeping up with the complexities of the real world is quite difficult.

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While with blockchain technology, after observing the security-related breaches involving BitcoinGold, Etheru, ZCash, and many more cryptocurrencies showcase that there will be a little delay to develop both secure and scalable blockchains using real-world applications. 

In the future, the bonding of blockchain and AI will evoke unlimited innovations and revolutions for companies. Many of such technological understanding needs good learning platforms like upGrad and a course like Master of Science in Machine Learning & AI where 20 Programming Languages, Tools & Libraries are Covered to provide hands-on programming knowledge. Upon completion, you will be awarded certification from Liverpool John Moores University, which will be great to secure a high paying job.


Pavan Vadapalli

Blog Author
Director of Engineering @ upGrad. Motivated to leverage technology to solve problems. Seasoned leader for startups and fast moving orgs. Working on solving problems of scale and long term technology strategy.
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Frequently Asked Questions (FAQs)

1What is blockchain?

Blockchain is an addition to internet technology. It is a system which stores and verifies all transactions that occur within it. Each block of data contains information about the transaction that has taken place. Every block is connected to the previous block, which means it cannot be manipulated or changed after it has been stored in the blockchain. This makes the blockchain a transparent system where every user and transaction can be easily tracked. Blockchain applications like Bitcoin are a revolution in the world of finances wherein people can make anonymous transactions, all completely transparent.

2What is artificial intelligence?

Artificial intelligence is the field of computer science that studies how to make computers do things that would require intelligence if done by people. Things like visual perception, speech recognition, decision-making, and translation between languages. Artificial Intelligence (AI) is a term that covers the ability of machines to mimic human intelligence. AI is usually defined as the ability of a machine to solve problems that are commonly associated with human intelligence such as learning, reasoning, and problem solving. Machine learning, a subfield of AI, is a process in which a computer uses statistical techniques to give it the ability to learn and improve on its own.

3What are the differences between blockchain and AI?

Blockchain technology is a kind of a protocol, which will store all the financial and contract-based data. It will entail that data will be universally accessible. Blockchain technology will also make payment systems independent of the banks and the government, on the lines of cryptocurrency called Bitcoin. AI (Artificial Intelligence) technology is a way to solve the problems with scheduling and routing. AI is a computer program, which can perform the tasks which are usually done by humans. It learns from its own experience, which makes the AI smarter each passing day.

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